BUSINESS

Reliable power key to Luzon Economic Corridor

Mico Virata · Sep 27, 2026, 12:42 PM

THE proposed Pax Silica economic security and AI-native industrial hub in the Philippines spans approximately 1,618 to 1,620 hectares, in a site located within New Clark City in Tarlac, part of the Luzon Economic Corridor. Once fully operational, its power requirement is estimated to be around 5 gigawatts of electricity demand. — PHOTOGRAPH courtesy of RTVM/FB

Reliable and sufficient electricity will be critical to the Luzon Economic Corridor’s (LEC) ability to attract power-intensive investments, particularly in semiconductor manufacturing, advanced manufacturing and artificial intelligence-related industries, according to a report by the American Chamber of Commerce of the Philippines (AmCham).

The latest edition of AmCham’s Spark publication warned that the corridor will require a coordinated energy system capable of meeting large electricity requirements while providing investors with confidence in the reliability of supply.

The Luzon Economic Corridor, launched by the Philippines, United States and Japan in April 2024, connects Subic Bay, Clark, Metro Manila and Batangas through major infrastructure such as ports, airports and railways. It aims to improve the movement of goods and people while supporting industrial development and investment.

AmCham noted that semiconductor plants and other advanced manufacturing facilities can require electricity in the hundreds or thousands of megawatts. Data centers and highly automated factories also need stable, high-quality power with minimal interruptions.

The report cited yellow and red alerts placed over the Luzon grid in April and May as available capacity fell below demand, warning that tight supply could also contribute to electricity price volatility.

Power interruptions can be particularly costly for semiconductor and automated manufacturing facilities, where sudden outages can disrupt production, damage materials and result in losses beyond the cost of electricity itself.

AmCham said the government must ensure that planned power-generation projects remain on schedule while strengthening the grid to support the corridor’s expected industrial growth.

President Ferdinand Marcos Jr. said in his 2026 State of the Nation Address that the government was monitoring around 200 energy projects with nearly 10,000 megawatts of combined capacity. Of these, 45 had been completed, 31 were targeted for completion in 2026 and 124 by 2028.

The report said the energy groundwork must keep pace with the corridor’s infrastructure development and prospective investments.